Monday, 24 October 2016
Last updated 23 min ago
Mar 2 2011 | 9:14am ET
New Jersey hedge fund shop Stone Toro Asset Management is preparing for its second fund launch of the year.
The Princeton firm, which last month unveiled an event-driven arbitrage vehicle, is putting the finishing touches on a planned long/short technology fund. The new product, Stone Toro Alpha Tech, is set to debut in the summer.
Stone Toro, which was founded last year, has been using the new fund's strategy in eight separately-managed accounts since October, HFMWeek reports. The relative value fund will focus on small- and mid-cap U.S. technology stocks, with 50 long positions and half as many short.
The strategy has proven successful in its short life, rising 1.09% in November, 6.14% in December and 0.83% in January.
"Small- and mid-cap technology has historically led the market out of its recessionary phases," fund manager Michael Jarzyna told HFM. "You are seeing strength in technology and strength in small- and mid-cap stocks."
The new fund has a capacity of $500 million and a $1 million minimum investment requirement, with no lockup and monthly liquidity. It will charge 2% for management and 20% for performance, with Deutsche Bank as its prime broker.
Current investors in the managed account using the strategy will be able to keep their money segregated or join the hedge fund when it launches.